Affordable housing is the number one issue that our campaign is seeking to address. This isn’t a new issue for us, but it’s certainly one that we’re focused on solving. Rising housing costs have displaced many families from the city. In light of this, we’re fighting to ensure that the families that have been the organizational backbone of our communities for decades can continue to shape our city’s cultural legacy as we continue to gain new residents.
Recently this issue hit particularly close to home for many families. Residents are in shock after this week’s distribution of tax assessment notices to homeowners across Fulton County. Property values have gone up for nearly every household, and some have even found that their values have tripled since last year’s assessment. While home values have always fluctuated with the larger economic cycle, this year’s assessments are particularly worrisome.
District 4 is home to to some of the most economically vulnerable residents in the city, so this sudden increase in tax burden has distressed many families. This is especially disruptive considering that the average assessment valuation increase for residential properties across District 4 was 69.87%. While this could seem like a blessing for some, unfortunately only 35.4% of the District’s housing units are owner-occupied, a rate which is the second lowest in the entire city. In other words, because so many of our neighbors are renters, increased appraisal or assessment valuations don’t necessarily mean a windfall for our families.
These increased valuations are even more burdensome when you consider that District 4’s median household income is $24,533 (again, the second lowest in the city), and that 42.7% of homeowners spend more than 30% of their monthly income on housing (which is the national standard for housing affordability). Again, this is the second highest in the city, making District 4’s residents among the city’s most vulnerable.
This impacts both our renting and our home-owning families. An owner-occupied $100,000 home assessed at 40% would yield a tax bill around $500. Because homestead exemptions only exclude the first $30,000 of assessed value, that bill skyrockets to nearly $1,800 assuming the aforementioned 69.87% increase in assessment valuation. Remember, 69.87% is just the average–many homeowners had their values increase more than 200%. And if you’re renting that same house, you’re still likely to absorb your landlord’s tax liability–meaning that you absorb the costs that are passed on when the tax bill jumps to more than $3,000 since there’s no homestead exemption for renter-occupied housing facilities.
Whether you’re an owner or a renter, that’s a heavy lift for many of our families. But there’s a way forward. Here’s how we can preserve and protect access to affordable housing in Atlanta:
- Employ market-driven solutions, such as ending minimum parking requirements for new construction and removing traditional zoning requirements which would expand housing choices.
- Aggressively target blight and code enforcement violators, which would increase the supply of available housing and open more opportunities to families across the city. More on that here.
- Expand Invest Atlanta’s home down payment assistance programs, strengthening the pipelines available for residents to become homeowners.
- Work with county-level partners to develop new property tax exemptions for cost-burdened property owners
- Expand funding for land banks or community land trusts, which would stabilize land costs and promote economic diversity in neighborhoods by ensuring community stewardship of land.
- Adopt mandatory inclusionary zoning practices for transactions involving the sale or transfer of publicly-owned property.
No single policy initiative is a cure-all, but they can work together to ensure that more families can live in the communities of their choosing.
Updating our land use policies would allow for a diversity of uses which would meet the needs of families looking for housing options beyond large-scale multi-family and low-density single-family units. This market-oriented approach would enable developers to build additional units of housing in land-constrained communities. Ensuring a diversity of options and choices means that fewer residents are competing for the same limited housing stock, reducing the cost of housing for everyone. Inclusionary zoning would ensure developers allocate a portion of new construction to residents with low or moderate incomes. Density bonuses and tax abatements could allow developers to recapture a portion of construction costs.
These are just some of tools at our disposal.
I will also work to incentivize equitable affordable housing options in conjunction with transit-oriented development, which would concentrate mixed-income housing, daily services, schools and jobs near existing transit and this would enable residents to save money, improve their economic opportunities and ultimately improve the regional economy.
We must act with urgency as Atlanta is expected to grow by another 1 million people over the next 25 years.
Housing affordability affects all of us, and we must act now.